marginaalilaina

Marginaalilaina, often translated as marginal loan or margin loan, is a type of loan where securities owned by the borrower are used as collateral. This practice is commonly seen in the context of stock trading. Investors can borrow money from their brokerage firm to purchase additional securities, or to cover other investment-related expenses, by pledging the value of their existing portfolio. The amount that can be borrowed is determined by the margin requirement set by the brokerage and regulatory bodies.

The primary benefit of a marginaalilaina is that it allows investors to leverage their capital, potentially amplifying both gains and losses. If the value of the securities in the margin account increases, the investor can realize a higher return on their investment than if they had only used their own funds. However, if the value of the securities falls, the investor's losses are also magnified.

A crucial aspect of marginaalilaina is the margin call. If the value of the collateral falls below a certain threshold, the brokerage firm will issue a margin call, requiring the borrower to deposit additional funds or securities to meet the minimum margin requirement. Failure to do so can result in the brokerage firm liquidating the borrower's securities to cover the outstanding loan, often at unfavorable prices. This means that marginaalilaina carries a significant risk of rapid and substantial financial loss.